Vizio reported increased revenue and gross profit for its third financial quarter (Q3) of 2024, driven by a rise in advertising and partnerships that bolstered platform income, alongside a notable increase in new customer activations of smart TVs.
In Q3, Vizio’s smart TV user base grew to 19.1 million, marking an addition of 300,000 accounts. The company’s total net revenue reached approximately $445 million, reflecting a 4% year-over-year increase. Platform revenue contributed $197 million to this total, while gross profit from this segment was $115.8 million, showcasing growth across all categories. Average revenue per user (ARPU) rose 18% to $37.17.
Despite these gains, net income plummeted by 96% to just $500,000, down from $13.8 million in Q3 2023. This decline was influenced by various operating expenses, including taxes and amortization. Vizio users streamed an average of 101 hours of content per month via the SmartCast platform, aided by the introduction of a Sports Zone feature that directs viewers to specific channels or apps broadcasting live sports events.
Vizio expanded its free, ad-supported streaming TV (FAST) service, WatchFree Plus, by adding new linear channels from networks such as Britbox and the BBC. The company also launched a mobile-accessible version of WatchFree Plus, enabling users to stream content without needing a Vizio smart TV.
Vizio’s Platform+ business, encompassing advertising and sponsorships on its streaming services, grew by 26% compared to Q3 2023, totaling $197 million. Advertising revenue within this segment surged by 31% year-over-year, reaching $161 million, thanks to increased engagement and a broader advertiser base. The number of direct ad relationships expanded by 20% year-over-year.
The remaining $36 million of Platform+ revenue was generated from non-advertising sources, which saw an 8% increase year-over-year, attributed to ongoing growth in content distribution. Vizio introduced 26 new apps on its platform, raising the total to over 270 built-in applications.
ARPU also improved, standing at $37.17 at the end of Q3, up 18% from the previous year. Advertising contributed significantly to this growth, with SmartCast advertising ARPU at $30.37, which constituted 82% of the total SmartCast ARPU. This marked a substantial increase from the $8.23 total ARPU recorded in Q1 2020.
While Vizio’s advertising revenue rose, the company reported a net income of $500,000 for Q3, down from $13.8 million in the same quarter last year. Adjusted EBITDA fell by 67% year-over-year to $8.8 million, partly due to $10.6 million in acquisition-related costs and $3.1 million in cash incentives related to its long-term incentive plan.
Additionally, Vizio expanded the reach of its WatchFree+ FAST service beyond its own devices for the first time, making it accessible through its mobile app for iOS and Android, positioning itself alongside other device makers that offer similar services.
